Net1 slumps further

South Africa’s Net1 shares fell even further as the FBI’s investigation continues.

People queuing. Picture: Aletta Gardne/EWN

JOHANNESBURG - Shares in the technologies company fell a further 47 percent on the Johannesburg Stock Exchange (JSE) on Thursday.

Net1 is being investigated by the US Justice Department and by the FBI for alleged corruption.

It has a secondary listing on the JSE and a primary listing on the Nasdaq.

When the news first broke on Tuesday, shares in the company fell by 50 percent on the US markets.

Net1 UEPS Technologies is the sole distributor of social grants in South Africa and won a R10 billion tender earlier this year.

But ABSA subsidiary All Pay who had also been in the running for the contract accused the company corrupt practices in winning the tender.

The courts later ruled that the tender was flawed and illegal, but decided to keep the contract in place.

US Authorities are now investigating if there was in fact corruption involved.

The US Department of Justice is investigating whether the company had violated provisions of the Foreign Corrupt Practices Act.